Helpful Advice For Surviving Your Personal Bankruptcy

Anything that leads you to declaring or filing for bankruptcy is probably not a happy story, but that does not mean that your life after bankruptcy cannot be better. The whole point is to wipe the slate clean and have a new chance at life. Learn how to make bankruptcy work for you, instead of allowing it to devastate your life.

If you can, get a word-of-mouth referral for a lawyer. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.

No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Put everything out on the table and craft a wise plan for handling the situation the best you can.

Stay abreast of new laws that may affect your bankruptcy if you decide to file. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.

Don’t file for bankruptcy unless it’s absolutely necessary. You may well be able to regain control over your debts by consolidating them. There is not easy process associated with personal bankruptcy. It will have a long-lasting effect of your future credit opportunities. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.

Chapter 13

Consider filing for Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.

If you are making more money than you owe, bankruptcy should not even be an option. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.

Lower Payments

You may want to see if you can get lower payments on your vehicle if you want to keep it. Lower payments can sometimes be structured into a Chapter 7 solution. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.

Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. Your creditors can then come after your co-debtor for full repayment of the debt.

If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. This is a lot harder. Your bankruptcy custodian will need to approve the loan. You need to show them why and how you can handle paying back the new loan. You’ll also need a valid reason for making the purchase.

Going through bankruptcy is tough and can be mentally and emotionally draining. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Be sure that you consider more than the expense when you choose a lawyer. The cheapest attorney may not be the best, but the most expensive may not be the best either. Ask for referrals from folks who have filed and check reputations with the BBB. You might be able to view a court hearing. You might be able to watch how your prospective attorney handles the case.

The road to personal bankruptcy is a sad and difficult one. Even though that is the case, you should not allow it to depress you in any way. Bankruptcy may well represent the point where you turn your life around, and you can handle it better by making use of the suggestions this article has provided.

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